Bitcoin Dominance Surges as Market Volatility Shakes Crypto Landscape, Wintermute Reports
Bitcoin is flexing its muscles while the rest of the market stumbles. The original cryptocurrency's share of the total market cap is climbing—a classic flight to safety when uncertainty hits.
The King's Comeback
Forget the altcoin season chatter for now. Traders are dumping speculative bets and piling back into the digital gold standard. It's a brutal reminder that in crypto, when the tide goes out, everyone runs for the same lifeboat.
Volatility as a Catalyst
Market swings aren't just noise—they're a sorting mechanism. Sharp downturns separate robust networks from fragile experiments, and right now, that process is pumping capital straight into Bitcoin's veins. The old guard is getting stronger while newcomers fight for scraps.
One cynical take? It's the same old story: Wall Street's 'risk-on, risk-off' playbook, just with fancier technology and worse memes. When fear spikes, the herd stampedes toward the one asset they all recognize—proving that for all its decentralization promise, crypto still dances to the same psychological tunes as traditional finance.
Wintermute says altcoins are still on the downside due to a busy token unlock schedule
In its X post, Wintermute wrote, “As we head into the holiday period, market structure continues to narrow. Bitcoin dominance pushed higher again, reinforcing the trend that has defined much of the second half of the year.” However, it noted that altcoins remain under pressure, dragged down by large supply overhangs and a busy token unlock schedule.
Overall, leading cryptocurrencies continue to draw interest in buying. BTC has benefited from sustained demand, and ETH is also showing growing buying pressure going into year-end, the firm claimed. This trend WOULD be consistent with the widely held premise that BTC must take the lead for the market to expand into more speculative risks.
The trading firm also noted that while spot buyers anchor the majors, derivatives have become key for price discovery, allowing net purchases of BTC and ETH even during sharp intraday moves caused by Leveraged liquidations.
Funding and basis also stayed tight for the majors through the sell-off. Still, options markets continue to price diverse scenarios, with high implied volatility and positions divided between downside to mid-$80,000 and a rebound. It added that traditional finance continues to MOVE into the space despite the recent volatility, noting that similar involvements in the past have been deliberate and long-lasting.
However, market conditions remain somewhat volatile, with low liquidity and desks decreasing activity. As the year-end and holiday season approaches, trading is expected to be more subdued and selective, with range-bound moves. Without a specific macroeconomic or policy anchor, price positioning remains the primary determiner of the market outcomes.
Wintermute has more than $416 million worth of cryptocurrency assets
Earlier this month, on-chain data from Arkham Intelligence revealed that Wintermute offloaded significant cryptocurrency holdings—specifically Bitcoin and Ethereum, after prices began to slump and volatility in the cryptocurrency market increased across the board.
Reports circulated that Wintermute-backed wallets funneled large volumes of BTC and ETH to centralized venues, such as Binance, in late November and early December, with more than $1.5 billion in bitcoin estimated to have moved in brief intervals over just three weeks.
According to blockchain data, the firm’s tracked holdings fell from around $540 million in late November to approximately $320 million at one point, before recovering part of the decline. Arkham now estimates that the company holds approximately $416 million on-chain, spread across multiple major cryptocurrencies, including 778,515 SOL tokens, 340 Bitcoins, and over $45 million worth of USDC.
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